The cryptocurrency market recently experienced a wave of chain liquidations, with accelerated sell-offs affecting Bitcoin ($122,948), Ethereum ($4,490), XRP, Solana ($221), and Dogecoin ($0.249). According to CoinGlass data, the total value of liquidated positions reached around $700 million, with XPL standing out for its significant losses. These liquidations were driven by high leverage and increased volatility amid macroeconomic uncertainties, pushing global investor sentiment into a cautious mode.
On major high-volume exchanges, consecutive stops in futures products for Bitcoin and Ethereum triggered a chain reaction that spread to XRP, Solana, and Dogecoin. While the total intraday liquidation was lower than previous multi-billion-dollar events, it still represents a medium-to-high intensity shock in the market.
Bitcoin, the largest cryptocurrency, fell from a recent record high of $126,200 to $121,600, influenced by prolonged U.S. government spending deadlocks and liquidity concerns. Declines in Ethereum and major altcoins created cross-market pressures between spot and futures trading, and rapid volatility caused positions with poor risk management to be liquidated.
Market experts noted that increased leverage over recent weeks amplified the impact, turning buying pressure into rapid declines. Additionally, amid growing uncertainty over a potential U.S. government shutdown, even small sell-offs were enough to trigger chain liquidations. Investors shifted toward traditional safe-haven assets like gold, which reached new highs, while crypto volatility surged.
XPL, in particular, experienced extreme fluctuations, sparking discussions about potential “insider selling.” The project team denied these claims, emphasizing that team-allocated tokens were locked. These events highlight how fragile the balance between supply and demand can be during new listings and how quickly prices can deteriorate during broader liquidation events.